GEORGE TOWN, March 12 — The Penang state executive council has approved a proposal to acquire land along the Penang Mutiara Light Rail Transit (LRT) alignment.
Chief Minister Chow Kon Yeow said the Land and Mines Department proposed acquiring both private and government-owned land, including plots belonging to the Penang Island City Council.
“This includes private and government lands, including those owned by the Penang Island City Council,” he said at a press conference in Komtar today.
Around 100 lots will be acquired, with some structures set to be demolished or relocated. Following the state exco’s approval, the affected lots will be gazetted, and notices will be issued to landowners.
“This will involve land in both the northeast and southwest districts of the island,” he added.
On compensation for affected landowners, Chow said the amount has yet to be determined, as it will need to be evaluated by the relevant agencies.
“There will be hearings on compensation with landowners, and this process will take about three months before it is finalised,” he said.
Regarding the LRT project’s progress, Chow said a value management workshop is currently underway, involving the Economy Ministry, MRT Corporation (MRTC), and SRS Consortium, to finalise the project’s design and costs.
“It is expected that by the end of the workshop this Friday, more issues will be finalised for decisions to be made,” he said.
He noted that multiple aspects of the project are progressing simultaneously, including the planning permission application and the addition of a new alignment from Macallum to Penang Sentral.
“There are many components in this project, involving technical, financial, planning, and other issues,” he said.
Soil investigations are also being conducted at several locations, including East Jelutong and Sungai Nibong.
On the redevelopment of the Pesta site, Chow said it will be a transit-oriented development due to the availability of land in the area.
“MRTC has proposed a development plan for the site to maintain the Pesta site as part of Penang’s heritage, but it will be rebuilt, with its size reduced from 16 acres to 13 acres,” he said.
While the final design has yet to be decided, it has been agreed that the project will be transit-oriented.
“The master planning for the site is a collaboration between the state government and MRTC,” he said.
Meanwhile, the tender for Package Three of the LRT project—covering system work, communications, trains, ticketing, and track works—has been open since December 2024.
Chow said the tender has attracted significant interest, prompting an extension of the closing date to April 15.
Physical work on the LRT project is expected to begin in the third quarter of this year.
“Now, we can consider that work has started because all these processes are necessary for physical construction to commence,” he said.
